virtual financial - general theory of financial growth

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Page 1: Virtual Financial - General Theory Of Financial Growth

Virtual Financial Group

Page 2: Virtual Financial - General Theory Of Financial Growth

The General Theory Of Financial Growth

Scientific works in the field of finances due to specifications of research are characterised into many sides and many levels. The totality of economic relations is generated during the process of formation. Distribution and various usages of finances as sources of money are widely spread. Formation of funds for money sources for the process of distribution as well as redistribution of natural receipts according to usage of distribution is how finances reflect economic relations. Such definitions are given owing to conditions of capitalism, where cash commodity relations achieve universal character. Finances represent formation of centralized and decentralized money sources. Also, economic relations relative with distribution and usage serve fulfilment of state functions and obligations as well as provisions for further expansion.

Page 3: Virtual Financial - General Theory Of Financial Growth

Various Environments For Financial Growth

It might go unnoticed, but sometimes businesses sit on undiscovered cash resources which can be used for finance growth. Deloitte issued a report on UK’s largest businesses sitting on £60 billion non-productive working capital. Inefficiently handling working capitals can unnecessarily tie up cash. Cash can be released and sent back to the system allowing self-financing growths. However, various factors have to be kept in mind by taking a close look at the procedures , how outstanding payments are chased and how credit terms are granted.

Page 4: Virtual Financial - General Theory Of Financial Growth

Things To Consider While Planning For Stable Financial Growth

Stock is kept at an optimum level must be ensured by improved inventory management. Thus here, cash can be released to support finance and growth. Inspecting inventory management processes and identifying areas where cash is tapped is important. Proper management of working capital not only means improved control of debtors and stock, but also about maximising various terms collected by the creditors. To maintain top class relation with the suppliers, your financial position can be boosted by properly utilizing the terms provided by the suppliers.

Page 5: Virtual Financial - General Theory Of Financial Growth

Improved Management Of Working Capital

With time, traditional ways of funding are getting more difficult to access, so businessmen are resorting to use their personal resources for economic growth. Be it drawing cash from savings accounts, personal credit cards or mortgaging personal assets, people are resorting to different ways to prosper faster. Federation of small businesses conducted a survey which came up with the results as 33% of respondents have used their personal assets to boost growth. Personal resources are preferred as it is an immediate and effective solution while having to debt or liability. The working capital can be enhanced with smart management skills and quick thinking.

Page 6: Virtual Financial - General Theory Of Financial Growth

Asset Finance Being A Reliable Resource

The asset finance industry rests on the idea of preserving cash or speeding up the access to it. An asset has been a source of finance for a very long time, but is gaining recognition recently. In a world ruled by cash, asset financers help conserve cash by purchase of assets like vehicles, machinery and other equipment. Asset financers help speed up the flow of cash within a business by allowing access to cash. Hence such financing allow the businesses to fund a higher rate of growth.